Business Finance Options for New Start-Ups
November 20, 2008 – 3:09 pmThere are various business finance plans open to a new start-up, but they all fall into 2 major categories, namely, owner financing and borrowed business finance. Each of these 2 major categories has an upside and a downside that every enterpreneur seeking business finance should be aware of. The key to success in business finance would then be finding ways to exploit the advantages of one's chosen financing option, while also mitigating against its downside. The first major business finance category is owner financing. Owner financing refers to money that the entrepreneur and other promoters of the business contribute to start it. In most cases, owner financing comes from the enterpreneur's savings. The main advantage of owner financing as a source of business finance for a new start-up is that it comes at no cost (except possibly its opportunity costs) . As it were, the other major business finance option - ...